Economic Conditions for the Las Vegas Valley February 2008

Housing Conditions:

• Foreclosure/Short Sale Listings (3/31/2008): Total Listings 22,502; Short Sales: 5138, 22% of all listings; Bank Owned Listings: 2175, 9.6% of all listings.
• New Home Sales (February 2008, units sold): 786 Year Change -31.2% (excl condo conversions, highrises)
• New Home Sales (February 2008, median price): $273,000 Year Change -17.3% (excl condo conversions, highrises)
• Existing Home Sales (February 2008, units sold): 1529 Year Change -34.4%
• Existing Home Sales (February 2008, median price): $235,000 Year Change: -18.7%
• New Home Permits (February 2008): 391 Year Change -69.4%
• Rental Rate (MLS Monthly Average January 2008): $1511/month 

My analysis: Resale listings are down and pendings are up sharply.  REO listings are in a seller's market.  The rental market has been consistently rising since November 2006.  Fire sale prices remain attractive to both long term investors and buyers tired of paying rent. 

New Residents/Employment Conditions:

• New Residents (February 2008): 5,694, Year Change -16%
• Total Employment (January 2008): 921,400, Year Change +0.9%
• Unemployment Rate (January 2008) 5.7%, Year Change +21.3%

My analysis: The rising unemployment rate concerns me.  Availability of jobs will not keep new residents streaming in to town.  Could be tied to construction jobs lost and lack of home equity money for home improvement services

Tourism/Gaming Conditions:

• McCarran Airport Total Passengers (January 2008): 3,576,857 Year Change -2.8%
• Gaming Revenue (January 2008): $928,650,794, Year Change -4.1%
• Visitor Volume (January 2008): 3,507,322, Year Change -1.1%
• Convention Attendance (January 2008): 677,978, Year Change -13.1%
• Hotel/Motel Occupancy (January 2008): 84.9% Year Change -0.6%

My analysis: Declining convention attendence should be a concern but all other numbers are consistent and just down slightly

Sources: Salestraq, Home Builder's Research, Greater Las Vegas Association of Realtors, Nevada State Gaming Control Board, Nevada Department of Motor Vehicles, McCarran International Airport, Las Vegas Convention & Visitor's Authority, Nevada Department of Employment, Training and Rehabilitation